Connect with us

Business

Cansortium completes merger with RIV Capital, plans to scale up in New York

Published

on



Florida-based Cansortium (CSE: TIUM.U) (OTCQB: CNTMF), which does business as Fluent, has finalized its megamerger with New York-based RIV Capital, (CSE: RIV) (OTC: CNPOF), creating a new multistate operator that has a footprint in four states with 42 operational dispensaries.

The move gives Cansortium immediate access to New York, one of the fastest-growing legal marijuana markets in the nation, along with its existing portfolio of cannabis shops and grows in its home state, Pennsylvania and Texas. The company now owns eight total cultivation and processing facilities, which it said in a press release would allow it to bolster the Fluent brand even more going forward.

The company reportedly has $33 million in the bank with which to finance further acquisitions, it said in a Thursday announcement.

Another major winner in the deal is Scotts Miracle-Gro, which has a sizable stake in RIV Capital through its subsidiary The Hawthorne Collective. Existing shares will be converted into 1.245 shares of the newly formed Fluent, eliminating $160 million in company debt.

Shareholders of Cansortium will own 51.25% of the new Fluent, while shareholders of RIV Capital will own 48.75%, the company said. The company will continue trading under Cansortium’s existing ticker symbols on the Canadian Securities Exchange and the Over-The-Counter markets.

Cansortium CEO Robert Beasley will continue to lead the new company, and RIV Capital interim CEO David Vautrin will serve as the new company’s chief commercial officer.

Beasley said in the release that Fluent intends to scale up wholesale operations in New York to boost its Moods brand of marijuana products and “gain additional shelf space in dispensaries across the state,” which he said has “immense potential.”

The merger could prove key to the long-term prospects for both Cansortium and RIV Capital. Cansortium posted an $11.7 million net loss for the third quarter of 2024, and RIV Capital reported a $63.4 million net loss for the same period.

“Looking ahead, we remain focused on sustainable, long-term growth and will continue to drive efficiencies across all areas of the business to achieve our profitability and cash generation goals,” Beasley said.



Source link

mscannabiz.com
Author: mscannabiz.com

MScannaBIZ for all you Mississippi Cannabis News and Information.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Massachusetts regulators order single-lab testing to combat cannabis lab shopping

Published

on



Massachusetts regulators will require cannabis businesses to use a single laboratory for all compliance testing in an effort to prevent companies from shopping around for favorable test results.

The state’s Cannabis Control Commission voted 3-0 to require licensed businesses submit testing samples to one independent laboratory starting April 1, 2025, according to an administrative order advanced Thursday. The new rule is meant to close loopholes that some say have allowed companies to shop around for labs to juice their numbers for market share.

“This administrative order continues our mission of being a strong regulator,” Acting Executive Director Debbie Hilton-Creek said in a statement.

Under current rules, companies can split testing among multiple labs. The practice has led some facilities to report suspiciously high THC levels or overlook contamination to attract business.

The commission’s enforcement team said the changes would reduce risks of noncompliant products reaching consumers and improve audit capabilities. The move follows a November listening session in which testing concerns were raised, according to the announcement.

If an original testing lab needs to subcontract work, they must first obtain commission approval and demonstrate they are “incapable of performing certain required tests due to a hardship.” Labs also can only subcontract with one other facility at a time.

“The commission shall only approve subcontracting agreements when the Originating Independent Testing Laboratory is incapable of performing certain required tests due to a hardship relative to its facilities, instrumentation, personnel, or required consumable materials or in the event of an actual or potential conflict of interest,” according to the order.

Results must be uploaded to the state’s tracking system within 72 hours, with all certificates of analysis containing the complete testing results, including any subcontracted work, it said.

The commission will also begin publishing THC test results on its public data platform and establishing regular meetings with licensed laboratories to improve oversight.

The commission thus far has struggled to implement effective testing oversight. Earlier this year, the agency contracted with a private lab for a “secret shopper” program to verify retail products’ test results, Green Market Report previously reported. Unlike other major cannabis markets such as California and Colorado, Massachusetts lacks a state reference lab to independently verify commercial lab results.

Analysis of testing data by MCR Labs found that across multiple states, laboratories reporting higher THC concentrations tend to increase their market share while those reporting average failure rates lose business, according to Chemical & Engineering News.



Source link

mscannabiz.com
Author: mscannabiz.com

MScannaBIZ for all you Mississippi Cannabis News and Information.

Continue Reading

Business

The Daily Hit: December 19, 2024

Published

on



News from: US Farm Bill, Fluent Cannabis, Massachusetts and more.

The Daily Hit is a recap of the top financial news stories for Thursday, December 19, 2024.

On the Site

Farm Bill extension leaves hemp industry rules intact for now, including intoxicating products

The farm bill extension would run through March 2025.

Read more here.

Cansortium completes merger with RIV Capital, plans to scale up in New York

Scotts Miracle-Gro, which is a major investor in RIV, also benefits from the deal.

Read more here.

Massachusetts regulators order single-lab testing to combat cannabis lab shopping

The rule change follows growing evidence of inconsistent testing practices in the state’s $7 billion cannabis industry.

Read more here.

Nine New York social equity retailers ask to join lawsuit halting cannabis licensing for 3rd time

A court filing argued that the group of CAURDs are in danger of bankruptcy if the injunction is not removed soon.

Read more here.

In Other News

Greenway Greenhouse Cannabis Corp.

Greenway Greenhouse Cannabis Corp. entered into an asset purchase agreement to acquire all of Choice Growers’ consumer packaged goods brands, SKUs and listings of the brands, trademarks, goodwill and other associated intellectual property. This acquisition encompasses all of Choice Growers’ brands, including Grapefruit God Bud (also known as Grape God), The Jeffrey, Watermelon Pebbles, Pink Lemonade, Duke Nukem, Tangerine Dream and Blackberry Cheesecake.

Read more here.

Innocan Pharma Corp.

Innocan Pharma Corp. intends to complete a non-brokered private placement of up to 3.5 million units of the company at a price of C$0.20 per unit for gross proceeds up to C$700,000 plus 15% overallotment options. The offering is expected to close on or around Dec. 31.

Read more here.



Source link

mscannabiz.com
Author: mscannabiz.com

MScannaBIZ for all you Mississippi Cannabis News and Information.

Continue Reading

Business

Legal cannabis brands find their footing in New York

Published

on



Two years after its rocky start, New York’s legal cannabis market may be finally hitting its stride, with monthly sales soaring to $131 million across 215 dispensaries – a big shift from the single store that opened its doors in Manhattan’s East Village in late 2022.

The surge has created an unusually concentrated market where local brands are thriving and commanding premium prices, according to a new analysis from cannabis research firm Zuanic & Associates. While New York dispensaries remain sparse versus other legal states – just 11 stores per million residents versus California’s 32 – they’re proving remarkably productive, averaging $7 million in annual revenue per location.

“New York’s legal rec cannabis market is now at a $1.6 billion run rate,” Pablo Zuanic, the firm’s lead analyst, said. He acknowledged the recreational market’s challenges with red tape, illicit competition, and limited product selection but pointed to the market’s recovery in recent quarters​.

Local players have carved out strong positions across product categories. In flower, which makes up 35% of sales, homegrown brand Dank By Definition leads with 12.5% market share and charges a hefty premium at $14.12 per gram. But it’s facing growing competition from PharmaCann, one of the largest private multistate operators, whose LivWell and Matter brands have captured 18% of flower sales by targeting more value-conscious consumers.

The edibles segment tells an even more interesting story about brand power. Local manufacturer Off Hours commands nearly a quarter of sales, while California transplant Kiva has successfully exported its popular Camino brand to capture 19.4% of the market. That level of brand concentration – with top players controlling 40% or more of certain categories – is unusual for such a young market.

The combination of strong pricing and brand loyalty could attract more established cannabis companies looking to break into New York, either directly or through brand licensing deals. While most large multistate operators have limited presence here so far, the success of out-of-state brands like Kiva’s Camino in edibles and Rove in vapes shows there’s room for newcomers who understand the market’s premium positioning.

“Given strong pricing in the legal New York cannabis market, higher than normal brand concentration (for a new market), and what we would characterize as still volatile market share trends, we see an opportunity for MSOs to eventually build presence in the state,” Zuanic noted. “If they can make it there…”​



Source link

mscannabiz.com
Author: mscannabiz.com

MScannaBIZ for all you Mississippi Cannabis News and Information.

Continue Reading
Business57 mins ago

Massachusetts regulators order single-lab testing to combat cannabis lab shopping

Business2 hours ago

Cansortium completes merger with RIV Capital, plans to scale up in New York

Business3 hours ago

The Daily Hit: December 19, 2024

Business4 hours ago

Legal cannabis brands find their footing in New York

Business20 hours ago

Oregon Cannabis: State of the State (2024) – Cannabis Business Executive

Business23 hours ago

Marijuana activist leaders optimistic for progress in 2025

Business24 hours ago

cbdMD posts lower annual sales, mixed fourth quarter

Business1 day ago

Vireo nabs $75M through 120M new shares, goes on acquisition spree

Business1 day ago

The Daily Hit: December 18, 2024

Beena Goldenberg1 day ago

Organigram eyes global cannabis growth after Motif deal

Business1 day ago

Farm Bill extension leaves hemp industry intact for now, including intoxicating products

cannabis cafes1 day ago

Cannabis predictions for 2025: Low prices, high taxes, and hash

Business1 day ago

Bat Feces Used to Fertilize Cannabis Is Linked to 2 Deaths – Cannabis Business Executive

Business1 day ago

Cannabis Potency Testing Needs to Be Done the Right Way for Consumer Protection – Cannabis Business Executive

Business2 days ago

Charlie Fox opens largest northeast dispensary in Times Square

Business2 days ago

Massachusetts regulators advance social cannabis consumption rules

Business2 days ago

MediPharm Labs sells Ontario facility for C$5.5M as part of streamlining plan

Strains & products2 days ago

2024’s weed award winners and where to buy them

Alabama2 days ago

The Daily Hit: December 17, 2024

Business2 days ago

Ohio marijuana market continues maturing with new rules

Business2 days ago

Weedmaps co-founders bid to take company private

Business2 days ago

Organigram tops estimates, expands international reach ahead of major deal

Business2 days ago

Michigan’s cannabis prices continue to free fall, spelling trouble for industry

Business3 days ago

Kentucky governor defends out-of-state dominance during medical cannabis licensing lottery

Mississippi Cannabis News7 months ago

Mississippi city official pleads guilty to selling fake CBD products

Bay Smokes6 months ago

Free delta-9 gummies from Bay Smokes

California7 months ago

May 2024 Leafly HighLight: Pink Runtz strain

Breaking News7 months ago

Connecticut Appoints The US’s First Cannabis Ombudsperson – Yes there is a pun in there and I’m Sure Erin Kirk Is Going To Hear It More Than Once!

Mississippi Cannabis News7 months ago

People In This State Googled ‘Medical Marijuana’ The Most, Study Shows

best list5 months ago

5 best CBD creams of 2024 by Leafly

cbd7 months ago

New Study Analyzes the Effects of THCV, CBD on Weight Loss

California Cannabis Updates7 months ago

Alert: Department of Cannabis Control updates data dashboards with full data for 2023 

Breaking News7 months ago

Curaleaf Start Process Of Getting Their Claws Into The UK’s National Health System – With Former MP (Resigned Today 30/5/24) As The Front Man

Asia Pacific & Australia7 months ago

Thailand: Pro-cannabis advocates rally ahead of the government’s plan to recriminalize the plant

Mississippi Cannabis News7 months ago

Horn Lake denies cannabis dispensary request to allow sale of drug paraphernalia and Sunday sales | News

California Cannabis Updates7 months ago

Press Release: May 9, STIIIZY and Healing Urban Barrios hosted an Expungement Clinic & Second Chance Resource Fair

Dispensaries6 months ago

Ohio legal cannabis buyer’s guide to 2024

One-Hit Wonders7 months ago

Marijuana Rescheduling: Why Opponents Have No Idea What They Are Talking About

DEA7 months ago

President Biden Announces Federal Government Will Reschedule Cannabis in ‘Monumental’ Announcement

adult-use cannabis7 months ago

Monitoring Weed’s Business Landscape

Mississippi Cannabis News6 months ago

Medical Cannabis changes to take effect July 1

adult-use cannabis7 months ago

Majority of Texans Now Support Legalizing Pot for Adult Use

Pot Luck7 months ago

Benefits of Kratom: Uses, Effects And More 

Asia Pacific & Australia7 months ago

Australia: Legalise Cannabis MP Sophia Moermond quits party over offshore wind farm opposition

Mississippi Cannabis News7 months ago

Cannabis lab files appeal with Mississippi State Department of Health

Business7 months ago

Planet 13 reports $6M loss in first quarter, preps for Florida expansion

adult-use cannabis7 months ago

DeSantis Likely To Veto Hemp Bill that Would Limit THC, Sources Say

California7 months ago

Senator Cory Booker Visits Sacramento Cannabis Giant Amid Decriminalization Push

Trending